Multiple Choice
According to the permanent income hypothesis,which of the following should raise current consumption the most?
A) a lottery prize of $1,000
B) an unexpected year-end bonus of $1,000
C) a temporary tax cut of $1,000
D) an increase of $1,000 in annual salary
E) an inheritance of $1,000
Correct Answer:
Verified
Correct Answer:
Verified
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